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Autoliv (ALV) Q1 Earnings Lag Estimates, Revenues Surpass
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Autoliv, Inc. (ALV) reported adjusted earnings of $1.66 per share in first-quarter 2018, missing the Zacks Consensus Estimate of $1.81. However, the bottom line improved from the prior-year quarter’s $1.65.
During the quarter under review, Autoliv reported net sales of $2.81 billion, reflecting an increase of 7.8% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $2.79 billion.
Operating income gained 3.6% to $225.4 million. Adjusted operating margin was 8.8% in the reported quarter, higher than the prior-year quarter’s figure of 8.4%.
Sales at the Passive Safety segment increased 9.7% year over year to $2.24 billion in the reported quarter. Excluding positive currency translation effects, organic sales increased 1.4%. The segment’s operating income increased 10% year over year to $225.3 million.
Sales in the Electronics segment increased 1.8% year over year to $594 million. Excluding positive currency-translation effects, organic sales declined 4.1%. This decline was due to the phase-out effect of certain models with Restraint Control Systems and Brake Systems, which more than offset growth in Active Safety. The segment’s operating income increased 122% year over year to $30.2 million.
Financial Position
Autoliv had cash and cash equivalents of $793.9 million as of Mar 31, 2018, lower than $1.23 billion reported as of Mar 31, 2017. Long-term debt was $1.33 billion as of Mar 31, 2018, almost unchanged from the figure recorded as of Mar 31, 2017.
In first-quarter 2018, the company’s cash flow from operations was $16 million compared with the year-ago figure of $149 million. Net capital expenditures increased to $139 million from the year-ago figure of $121 million.
Guidance
For full-year 2018, Autoliv reaffirms expected organic sales growth for Passive Safety segment to be more than 10%, while compared with 2017 the segment’s profitability is anticipated to increase. For Electronics segment, organic sales growth is to be around negative 3% while profitability is projected to decrease compared with full-year 2017.
Bridgestone has expected long-term growth rate of 4.5%. Its stock has seen the Zacks Consensus Estimate for annual earnings being revised 3.6% upward over the last 30 days.
BorgWarner has expected long-term growth rate of 8.6%. Its stock has seen the Zacks Consensus Estimate for annual earnings being revised 0.5% upward over the last seven days.
Dana has expected long-term growth rate of 10%. Its stock has seen the Zacks Consensus Estimate for annual earnings being revised 2.4% upward over the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Autoliv (ALV) Q1 Earnings Lag Estimates, Revenues Surpass
Autoliv, Inc. (ALV) reported adjusted earnings of $1.66 per share in first-quarter 2018, missing the Zacks Consensus Estimate of $1.81. However, the bottom line improved from the prior-year quarter’s $1.65.
During the quarter under review, Autoliv reported net sales of $2.81 billion, reflecting an increase of 7.8% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $2.79 billion.
Operating income gained 3.6% to $225.4 million. Adjusted operating margin was 8.8% in the reported quarter, higher than the prior-year quarter’s figure of 8.4%.
Autoliv, Inc. Price, Consensus and EPS Surprise
Autoliv, Inc. Price, Consensus and EPS Surprise | Autoliv, Inc. Quote
Segment Results
Sales at the Passive Safety segment increased 9.7% year over year to $2.24 billion in the reported quarter. Excluding positive currency translation effects, organic sales increased 1.4%. The segment’s operating income increased 10% year over year to $225.3 million.
Sales in the Electronics segment increased 1.8% year over year to $594 million. Excluding positive currency-translation effects, organic sales declined 4.1%. This decline was due to the phase-out effect of certain models with Restraint Control Systems and Brake Systems, which more than offset growth in Active Safety. The segment’s operating income increased 122% year over year to $30.2 million.
Financial Position
Autoliv had cash and cash equivalents of $793.9 million as of Mar 31, 2018, lower than $1.23 billion reported as of Mar 31, 2017. Long-term debt was $1.33 billion as of Mar 31, 2018, almost unchanged from the figure recorded as of Mar 31, 2017.
In first-quarter 2018, the company’s cash flow from operations was $16 million compared with the year-ago figure of $149 million. Net capital expenditures increased to $139 million from the year-ago figure of $121 million.
Guidance
For full-year 2018, Autoliv reaffirms expected organic sales growth for Passive Safety segment to be more than 10%, while compared with 2017 the segment’s profitability is anticipated to increase. For Electronics segment, organic sales growth is to be around negative 3% while profitability is projected to decrease compared with full-year 2017.
Zacks Rank & Other Stocks to Consider
Autoliv carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the auto space are Bridgestone Corporation (BRDCY - Free Report) , BorgWarner Inc. (BWA - Free Report) and Dana Incorporated (DAN - Free Report) . While Bridgestone and BorgWarner carry Zacks Rank of 2, Dana sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bridgestone has expected long-term growth rate of 4.5%. Its stock has seen the Zacks Consensus Estimate for annual earnings being revised 3.6% upward over the last 30 days.
BorgWarner has expected long-term growth rate of 8.6%. Its stock has seen the Zacks Consensus Estimate for annual earnings being revised 0.5% upward over the last seven days.
Dana has expected long-term growth rate of 10%. Its stock has seen the Zacks Consensus Estimate for annual earnings being revised 2.4% upward over the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>